This article was cowritten by Tara King, Senior Counsel, and Emma Guidry, Senior Paralegal.
Due to an overwhelming number of claims for sexual assault damages against the Boy Scouts of America (BSA), the organization has recently filed for Chapter 11 Bankruptcy. As a part of the bankruptcy proceedings, a Scouting Settlement Trust was established, offering a pathway for survivors to file claims and receive financial compensation for the harm they suffered.
KEY FEATURES OF THE SETTLEMENT TRUST
The goal of the Settlement Trust is to fairly and efficiently provide financial compensation to survivors, though the process will take significant time due to the sheer volume of claims and the complex nature of each case.
The assets from BSA, its local councils, and other contributing entities, such as insurers, were pooled to create a compensation fund. The fund continues to increase as assets become available. Many survivors chose to file their claim as an “Expedited Claim” and receive a flat fee, likely a lower amount than Survivors who filed a “Direct Abuse Claim.” Survivors who filed Direct Abuse Claims prior to August 26, 2024 are eligible to have their claim processed and evaluated through the Trust.
HOW THE TRUST VALUES CASES
The Trust is responsible for determining the value of each survivor's claim. A “Claims Matrix” has been created by the Trust which establishes six tiers of abuse types and provides the potential value range for claims in each category. Each case is evaluated individually according to the Matrix, taking into consideration various factors specific to each claim. This ensures fairness, consistency, and efficiency.
Factors That Influence Case Valuation:
- Severity of the Abuse: The Trust assesses the nature and severity of the abuse suffered by each survivor using the tiers established in the Claims Matrix. This includes looking at the type of abuse, number of times the claimant was abused, and duration of abuse.
- Impact on the Survivor: In addition to the severity, the long-term physical, emotional, and psychological impact on the survivor is considered. This can be evidenced by medical records, psychological evaluations, and other documentation.
- Connection to the BSA: The Trust also evaluates the direct connection between the abuse and the Boy Scouts organization or its affiliates (local councils or chartered organizations). Evidence of connection to Scouting can include names listed on membership rosters (many of these rosters are contained in a Document Repository and can be searched), photographs, or other memorabilia from Scouting.
The Trust uses a scoring system or tier-based structure to assign values to cases. Survivors with more severe and long-term impacts are entitled to higher compensation than those with less severe claims.
ISSUANCE OF SETTLEMENT PAYMENTS
Once a claim has been evaluated and valued, the Settlement Trust will begin the process of distributing payments to survivors. However, there are important considerations survivors should be aware of in terms of payment timelines and processes.
Phased Payment Structure:
- Initial Payment: Most survivors will receive an initial partial payment, which represents a portion of their total award. This is common in large settlement trusts where funds must be distributed across many claimants.
- Holdback Amount: The remaining portion of the settlement will be held back until the Trust finalizes all claims and ensures that there is enough funding to cover all eligible survivors.
- Full Payment: Once the Trust has a clear picture of the total number of eligible claims and available funds, the remainder of the settlement will be paid out.
Estimated Timeline
One of the most common questions survivors ask is, “When will I receive my settlement?” Unfortunately, due to the complex nature of each claim and the volume of claims (tens of thousands), the Trust cannot provide an estimated timeline for issuing initial payments of valid Direct Abuse Claims. Your legal team will be in touch with you as soon as any information is provided by the Trust about your claim.
While the process of claim evaluation and payment distribution will take time, the Trust's framework is designed to fairly assess each case and ensure survivors receive the compensation they deserve.
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